The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Bournville have the right to extend the lease for an additional 90 years in accordance with legislation. Please think carefully before delaying your Bournville lease extension. Postponing that expense today simply escalates the amount you will ultimately have to pay for a lease extension.
Leasehold premises in Bournville with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Retaining our service will provide you enhanced control over the value of your Bournville leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful correspondence with the freeholder of her garden flat in Bournville, Olivia commenced the lease extension process just as her lease was coming close to the all-important 80-year threshold. The transaction completed in January 2007. The freeholder’s fees were restricted to less than 700 pounds.
Last Winter we were contacted by Mr and Mrs. N Taylor , who acquired a basement flat in Bournville in October 2007. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Similar homes in Bournville with an extended lease were in the region of £250,000. The mid-range amount of ground rent was £50 billed per annum. The lease lapsed on 28 September 2094. Considering the 68 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.
In 2009 we were contacted by Mr Dexter Robinson who, having was assigned a lease of a one bedroom apartment in Bournville in February 2009. The question was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Comparable flats in Bournville with an extended lease were in the region of £285,000. The average amount of ground rent was £55 collected annually. The lease ended on 4 May 2105. Considering the 79 years remaining we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus fees.